LG Electronics strikes gold

LG Electronics announced a turnover of $1.15 billion in the Middle East and Africa region last year.

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By  Vijaya Cherian Published  February 3, 2003

LG Electronics announced that it had a turnover of $1.15 billion in the Middle East and Africa region last year. The biggest selling regional markets for the company are currently Iran ($253 million), UAE ($155 million) and Saudi Arabia ($149 million). The company also announced that it is aiming at raking in $2.5 billion by the year 2005.

“This record-breaking performance is due to many factors,” stated M B Shin, president, LG Electronics Middle East and Africa. “We implemented a very focused strategy across certain product categories, which greatly enhanced our after-sales service operations region-wide.”

LG reported that the percentage of sales of its proproetary branded products grew 38% regionwide following its decision, last year, to reduce OEM product supplies to secondary equipment manufacturers. “Regional OEM sales fell by 29% last year, which is a good start. However, in 2002, 90% of our total regional sales were for LG branded products,” explained Shin.

This year, LG’s budget for research and development has been raised by 20% — amounting to 1.15 billion dollars. LG’s resolutions for the new year include selling 1.5 million mobile phones in the region, expanding its sales and service networks to rural areas and investing in training for channel partners.

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